It is one of the most common ways of interacting with the financial markets. Even before thinking about where to invest small or large sums of money, insurance offers protection: This is precisely one of the main functions of the financial system.
May it be an unexpected illness, a fire in your home or a calamitous event such as a storm – events that can upset our lives – it is much better that it is the entire financial system, rather than the single individual, to bear these risks.
Operation is simple. The Company tries to put a “price” on the aforementioned risks – estimating them correctly means making a profit – and then taking action, in whole or in part, in favor of the insured when insured events occur.
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THE "PANELS" OF THE ECONOMIC WORLD: INFLATION AND INSURANCE: Causes of the increase in the cost of claims and effects on premiums
Alex Gaetani